Public liability insurance should be made compulsory, according to a leading Biba figure.
Biba Scotland deputy chairman John Hunter-Paterson, who runs broking firm JHP, told The Sunday Herald: "A radical approach is required to resolve the current liability crisis."
Hunter Paterson said too much emphasis has been placed on amending the 1969 Employer's Liability Act.
He added: "Tinkering at the edges will not reduce or stabilise the liability market. The situation is fuelling a massive expansion of the black economy, which is depriving insurers of much-needed premium income.
"The Treasury will see a growing shortfall in revenue from income tax, corporation tax and insurance premium tax. Meanwhile, the consumer faces even greater losses and hardship arising out of loss or damage caused by the negligence of uninsured tradesmen."
He said if public liability insurance were compulsory, it could alleviate the liability market's problems.
It would also bring longer-term premium stability, he said, adding: "Insurers could endorse relevant policies to exclude all claims arising out of the negligence of uninsured sub-contractors.
"The onus would then be on the principal to ensure sub-contractors are insured. In the construction industry and elsewhere an uneven playing field is being created as insured contractors are losing out on valuable work to uninsured firms.
He warned however that for such a law to work it would need to be rigorously enforced.
